More rational thinking from Mike Masnick on the Instagram TOS changes:
Furthermore, even if the terms are worded poorly (it’s mostly boilerplate, and you’ll find somewhat similar terms in lots of places) if Instagram really went out and started selling your photos to appear in, say, a big magazine or TV ad, there would be significant public backlash over that, such that it’s probably in their own best interest not to do that without direct permission.
Exactly. Does anyone believe Instagram or Facebook would be stupid enough to do this? Why? Because they’re “evil”? Only an extremely paranoid or insane person would believe that. To make money? Sure, but that money would quickly fall to $0 when everyone left over actually justified outrage.
Despite what everyone would like to believe, these companies are neither stupid nor evil.